NOTES TO FINANCIAL STATEMENT
Related parties
Related parties comprise the major Shareholders, the Board of Directors and key management personnel of the Company and those entities in which they have the ability to control or exercise significant influence in financial and operation decisions. The transactions with these related parties are primarily financing in nature as follows:
| 2022 | 2021 | |
| AED | AED | |
| Premium and insurance balances receivables | ||
| Shareholder | ||
| Finance House PJSC | 4,245,137 | 2,077,408 |
| Others | ||
| Finance House LLC | 15,933 | 253,390 |
| Securities LLC |
10,248 |
161,728 |
4,271,318 |
2,492,526 |
|
| Insurance and other payables | ||
| Shareholder | ||
| Finance House PJSC | 12,000,000 | 7,500,000 |
| Others | ||
| FH Capital P.S.C |
2,047,973 |
1,400,000 |
14,047,973 |
8,900,000 |
|
| Investments | ||
| Shareholder | ||
| Finance House PJSC – Sukuks | 6,950,000 | 6,950,000 |
| Others | ||
| Finance House Securities LLC – Commercial papers |
7,000,000 |
5,000,000 |
13,950,000 |
11,950,000 |
|
| Cash and cash equivalents | ||
| Shareholder | ||
| Cash at bank – call account | 9,113,164 | 17,723,273 |
| Cash at banks – current accounts | 173,177 | 1,730 |
| Others | ||
| Cash at banks – current accounts |
119,353 |
119,458 |
9,405,694 |
17,844,461 |
|
| Tier 1 capital | ||
| Others | ||
| Abdul Hamid Umer Taylor | 2,000,000 | 2,000,000 |
| Abdulmajeed Al Fahim |
500,000 |
500,000 |
2,500,000 |
2,500,000 |
Finance House P.J.S.C is one of the major shareholders of the company as of 31 December 2022. FH Capital P.S.C, Finance House Securities L.L.C and Finance House LLC are subsidiaries of Finance House P.J.S.C.
The Company, in the normal course of business, collects premiums from and settles claims of other businesses that fall within the definition of related parties as contained in IFRS.
The following are the details of significant transactions with related parties:
| 2022 | 2021 | |
| AED | AED | |
| Finance House PJSC | ||
| Management fee | 6,000,000 | 6,000,000 |
| Gross premiums written | 4,460,256 | 4,213,045 |
| Interest on fixed deposits |
461,676 |
651,044 |
| Finance House Securities | ||
| Disposal of shares | 31,019,074 | 6,420,016 |
| Purchase of shares | 17,131,776 | 3,152,212 |
| Interest on investment in commercial paper | 237,339 | 204,308 |
| Gross premiums written |
405,230 |
337,049 |
| Finance House LLC | ||
| Interest on investment in sukuks | 423,926 | 388,475 |
| Gross premium written | 177,305 | 378,209 |
| Interest on Wakala fixed deposit |
– |
189,514 |
|
FH Capital |
||
| Consultancy fees |
703,797 |
500,000 |
| Board of directors | ||
| Remuneration |
856,796 |
937,360 |
| Gross premiums written | ||
| Finance House LLC |
177,305 |
378,209 |
